13:39 PM, 8th July 2011, About 10 years ago
Property investors who can source backpacking youth hostels for a franchise holiday firm can pick up a £10,000 finders fee.
Journeys specialises in budget accommodation for backpackers and runs six hostels in London, Brighton and Kent.
The firm wants to open more hostels across the UK and is seeking properties of 10 bedrooms or more in London, Edinburgh, Cardiff, Oxford, Cambridge, Bath, Manchester, Liverpool, Glasgow, Newquay and the Lake District.
Ideal properties are close to bus, rail or air hubs, no smaller than 6,500 square feet with a minimum of 10 rooms.
They should also be close to historic sites, tourist centres or major universities and preferably have ground floor frontage or the potential for a separate ground floor entrance.
The company already has franchisees – now they want to match them with properties.
Journeys offer five year hostel franchises, renewable for unlimited five year terms without paying further franchise fees as long as the business operates within the franchise agreement.
Franchisees pay a fee of £12,500 plus VAT and business set-up costs, including property costs.
Earning depends on the number of bunks in a property.
Journeys reckons a 50-bunk unit can earn around £57,000 after all costs after running for three years. A 150-bunk unit clears £97,000 after three years.
Income is maximised by fitting a three-tier bunk system with a privacy curtain. prices are all-in to include showers, internet, linen and breakfast. Most hostels also offer a bar.
Prices depend on time of year and other factors, but work out at around £15 to £20 a night per person.
Journeys also has a global booking system online for individuals or groups linking branches in Sydney, Manchester, London and Kuala Lumpur, Malaysia.
For more details call Freddie on 020 7231 4672 or go to the Journeys web site at http://www.visitjourneys.com/
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